COMMUNITY investors in Aberdeen will have the chance to back the construction of what is thought to be Scotland’s first urban hydro energy scheme.

The Donside Hydro renewable energy project is being developed by Aberdeen Community Energy (ACE), a community benefit society set up by members of the Donside Community Association (DCA).

The project is expected to generate around £30,000 each year for community initiatives and enough electricity to power around 130 homes annually.

It will do so by drawing water from the River Don to create clean, renewable electricity that will be sold to the national grid. Surplus profits from the initiative will be channelled into a community fund that will be used to achieve social and environmental benefits for local, deprived communities.

With construction planned for late May, ACE plans to launch a community share offer later this month, offering an ethical, low-risk investment opportunity to members of the immediate community and beyond. ACE estimates investors can expect around a five per cent return on their investment,

ACE is also inviting conversations with businesses or individuals who may be interested in supporting the initiative financially in the short term, as either a lender or investor.